Allianz Global Investors has invested in Moapa Solar, a Nevada-based solar photovoltaic facility. No financial terms were disclosed. Moapa Solar is owned by Capital Dynamics’ Clean Energy and Infrastructure.
New York, 1 June 2017 Allianz Global Investors (AllianzGI), one of the world’s leading active investment managers, announced today that it has made an investment on behalf of its clients into the Moapa Southern Paiute Solar Project (Moapa Solar). Moapa is a 250MW installed capacity solar photovoltaic facility located in Clark County, Nevada. This is the first infrastructure debt investment made by AllianzGI in a US solar project, and follows recent renewable energy investments in Grande Prairie Wind and Balko Wind.
Capital Dynamics’ Clean Energy and Infrastructure (CEI) acquired Moapa Solar on March 29, 2017.
AllianzGI, on behalf of its clients, was the anchor investor alongside a group of institutional investors that provided funding to refinance a portion of the acquisition price. The transaction was executed as a “back-leverage” loan in order to tailor the solution to the structure that Capital Dynamics had in place.
This is the first infrastructure debt renewable energy investment made by AllianzGI in a project sponsored by Capital Dynamics. KeyBank, N.A. acted as advisor to AllianzGI and MUFG Securities Americas Inc. acted as Placement Agent for the group of institutional investors. Nord LB and KeyBank, N.A. provided other ancillary debt facilities.
“AllianzGI Infrastructure Debt is an excellent financing partner for Moapa Solar due to its deep understanding of US renewable energy,” says John Breckenridge, Capital Dynamics’ Head of Clean Energy and Infrastructure. “We are pleased to have their support and look forward to working with them on this first venture together.”
Commenting on the transaction, Jorge Camina, Director of Infrastructure Debt at AllianzGI, said:
“Closing a transaction with Capital Dynamics is another important step in our infrastructure debt expansion in the US and reflects our commitment to renewable energy. Capital Dynamics is a long term owner of infrastructure assets and a natural user of our Infrastructure Debt product. This transaction is our second institutional back-leverage financing to a US utility scale renewable energy project. We will continue offering our clients the exposure they demand in US renewable energy and tailor our financing solutions to meet their individual needs.”
AllianzGI has been a leading provider of institutional infrastructure debt solutions to the European market since 2013 and entered the US market in 2015. With the achievement of the financial close of Moapa Solar, the AllianzGI infrastructure debt platform has now made close to $2.4 billion of investment commitments to infrastructure assets in the US over a period of less than two years, with more expected to follow.
Notes to Editors:
Capital Dynamics completed the acquisition of Moapa Solar from First Solar in March 2017. The California State Teachers’ Retirement System (CalSTRS) and the Netherlands’ APG Asset Management were also significant equity participants in the project.
The Moapa Southern Paiute Solar Project is a 250MWac solar photovoltaic facility located in Clark County, Nevada. The facility began operating in December 2016 and sells its entire output to Los Angeles Department of Water and Power (LADWP) under a 25-year power purchase agreement. The solar power plant is capable of generating enough clean energy to power approximately 111,000 homes. By using renewable energy from the sun, the Moapa Southern Paiute Solar Project will avoid approximately 341,000 metric tons per year of carbon dioxide emissions that would have been produced if the electricity had been generated using fossil fuels – the equivalent of taking nearly 73,000 cars off the road.
The AllianzGI Infrastructure debt team has completed investments of over $9.6 billion between the US and Europe since 2013. The U.S infrastructure portfolio has several large infrastructure investments, the first being the $700 million acquisition stage investment in the Indiana Toll Road in May 2015, subsequent investments include Chicago Skyway, the Long Beach Civic Center P3 project, Grande Prairie Wind and Balko Wind.
In addition to providing debt finance, the Allianz group has two other initiatives contributing to the growth of renewable energy in the US. Allianz Capital Partners manages the provision of tax equity for wind farms and, to date, has committed over $700m in the US. Allianz Risk Transfer provides an innovative risk management solution for hedging wind volume risks for wind farms and has successfully executed Proxy Revenue Swaps with several counterparties in the US totaling more than 800 MW.
Milbank Tweed Hadley & Mc Cloy acted as legal counsel to the AllianzGI investors and Amis, Patel & Brewer, LLP as counsel to CEI.